QQQE Profile
The Direxion NASDAQ-100 Equal Weighted Index Shares fund is designed to offer investors exposure to an equal-weighted version of the NASDAQ-100 Index. This index includes around 100 of the largest domestic and international non-financial companies listed on the NASDAQ Stock Market, selected based on their market capitalization. Unlike the traditional NASDAQ-100 Index, which weights companies based on their market cap, this fund provides equal weightings to each constituent, aiming to capture the performance of these companies without bias toward larger firms.
Under normal market conditions, the fund allocates at least 80% of its assets to securities that are part of the index or to investments with similar economic characteristics. This approach ensures that the funds holdings closely match the indexs composition, providing a balanced representation of all included companies. By focusing on equal weightings, the fund mitigates the impact of any single company's performance on the overall fund performance, potentially offering more diversified exposure compared to market-cap weighted indices.
The NASDAQ-100 Index is known for its concentration in technology and growth-oriented sectors, and this equal-weighted variant maintains that focus but with an even distribution of capital among the 100 constituent companies. This methodology can provide a different risk and return profile compared to traditional market-cap weighted indices, as it emphasizes smaller companies within the index alongside the larger ones. This can lead to potentially higher volatility but also the possibility of capturing more significant gains from smaller companies.
As a non-diversified fund, the Direxion NASDAQ-100 Equal Weighted Index Shares focuses solely on its specific index without additional asset classes or sectors. Investors in this fund gain targeted exposure to a broad array of prominent companies within the NASDAQ marketplace, with the equal weighting approach offering a unique alternative to traditional investment strategies that are more heavily influenced by a few large-cap stocks. This fund is suited for investors seeking concentrated exposure to the NASDAQ-100 with an emphasis on balance across its constituent companies.
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